Stop-loss insurance plan (also known as excess insurance) is a product that provides protection against catastrophic or unpredictable losses.
It is bought via employers who have decided to self-fund their employee gain plans, but do not want to expect 100% of the legal responsibility for losses arising from the plans.
Essentially, stop-loss insurance plan is a tool used by employers to mitigate towards the risk of catastrophic economic loss. Losses are capped at a positive amount, and any expenses in excess of gotten smaller limits are included by way of the stop-loss insurer.
The stop-loss characteristic in foremost medical contracts serves to assist reduce these costs. The stop-loss feature places a restriction on the maximum out-of-pocket charges an insured ought to incur for health care, above which the policy pays a hundred percent of the final eligible expenses.
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